LEIFRAS Co., Ltd. Reports Impressive Financial Growth in Q1 FY2026

On June 18, 2026, LEIFRAS Co., Ltd. (Nasdaq: LFS), recognized as a leader in youth sports and community engagement in Japan, announced its outstanding financial results for the first quarter of the fiscal year 2026, demonstrating record highs in revenue, adjusted operational income, and net income compared to the previous year.

Q1 Financial Highlights

The company's revenue reached JPY 3.0 billion (approximately $18.6 million), reflecting a significant year-over-year increase of 10.0% from JPY 2.7 billion in the same quarter of the previous year. The income from operations was reported at JPY 153.3 million ($1.0 million), showing a minor decline from JPY 166.1 million a year prior. However, the net income saw a modest rise of 1.5%, coming in at JPY 124.3 million ($0.8 million), compared to JPY 122.5 million from the last year.

Moreover, the adjusted income from operations increased to JPY 167.8 million ($1.1 million), representing a 1.0% growth over the previous year.

Detailed Breakdown of Operational Achievements

1. Sports School Business
- The total number of members in the sports school business was recorded at 60,960, albeit down from 62,495 the previous year, largely due to seasonal graduate turnover.
- Revenue from this segment amounted to JPY 2.2 billion ($13.6 million), marking a 5.6% growth from JPY 2.0 billion last year, driven by an increase in monthly tuition fees.

2. Social Business
- There were 2,120 club activities, which represented an impressive 7.6% rise from 1,971 last year.
- Revenue in this sector soared by 24.1% to JPY 791.4 million ($5.0 million), compared to JPY 637.7 million the previous year, a testament to the growing demand for after-school daycare and club support services.

Executive Commentary

Mr. Kiyotaka Ito, the Chief Executive Officer of LEIFRAS, expressed strong optimism about the company’s performance: "This quarter has proven to be exceptional for us, achieving record highs in essential financial metrics. Despite a small dip in membership due to graduations, we’ve managed a notable revenue increase through enhanced fee structures and resumed our strategic initiatives for growth."

He further emphasized that future expansions will target increasing the membership base of their sports schools through organic growth strategies and potential mergers and acquisitions. Furthermore, the company plans to capitalize on national policies that favor private sector involvement in school sports activities, which aligns with the government’s ongoing reform implementation period.

Financial Condition Overview

As of the end of March 2026, LEIFRAS maintained a cash reserve of JPY 2.48 billion ($15.6 million), a slight decrease from JPY 2.52 billion reported at the previous year’s close. Net cash utilized in operating activities decreased significantly to JPY 140.9 million ($0.9 million), contrasting with JPY 239.5 million used in the same quarter last year. There was also a notable shift in investing activities, with a rise in cash outflow to JPY 22.5 million ($0.1 million).

For financing activities, the company managed to convert what was once a negative cash flow into a positive by securing financing of JPY 116.9 million ($0.7 million), a drastic improvement from the previous year.

Outlook for the Future

Looking ahead, LEIFRAS reiterated that it expects a revenue range between $82.9 million and $95.7 million for the fiscal year ending December 31, 2026—translating to an approximate growth of 10.8% to 27.9% from last fiscal year's total of $74.8 million. Based on these solid results and forward-looking guidance, LEIFRAS continues to set a promising trajectory aimed at supporting youth sports and community well-being across Japan. Their dedicated approach towards fostering a healthy engagement with sports among children positions LEIFRAS as a crucial player in the evolving landscape of youth education and health.

Conclusion

With a comprehensive focus on not only financial success but also community engagement and education, LEIFRAS demonstrates a deep commitment to improve and empower future generations through sports. The unwavering support from customers, partners, and shareholders will be vital as they navigate upcoming challenges and opportunities in the fiscal landscape.

For more information, please visit LEIFRAS Investor Relations.